Item 5b on the agenda, unless tabled, will come to a vote the night before the June 7th primary in which Council member Lindsey Horvath’ claims that she cleaned up 80% of the homeless population in West Hollywood.
The proposal will cost 4.2 million for the facility plus expenses and renovations, plus staffing and create a homeless transition facility in the middle of West Hollywood between both its Santa Monica nightlife district and just south of the Sunset Strip.
The 23-unit motel will be narrowed to 20 units with the other rooms used for staff. The homeless resident will be ‘in transition’ Food will be offered to these residents. Approximately three permanent staffers will be on premises to oversee the Holloway homeless facility.
The side-deal, made though an agent, offered the owner of the Holloway Motel a bonus that would allow them to keep the billboard and grant entitlements for an equal or larger billboard. This opportunity would not be afforded anybody else who purchased the building along with the billboard attached.
AJ of Barneys Beanery was not pleased with the City Hall approach and its side deal. “There is no transparency in this inside deal that puts a homeless transition camp in the heart of center city.” he said at a Chamber business update meeting in early May.
Conditions of the purchase include:
Purchase of the property requires the City to approve a location for a new billboard structure of at least equal size and visibility of the current billboard. An easement (“Billboard Easement”) will be created for the billboard structure
which the ownership will be retained by the seller. As a part of the escrow agreement and escrow period, the City and
property owner will work on executing a development agreement for the revised billboard. Escrow will not close until the development agreement has been executed.
The purchase agreement expressly states the pre-arranged agreement that could not be offered to a private buyer.
“Seller desires entitlements for a new, static two sided billboard, not to exceed 1,500 sf per side (the “New Billboard”), which New Billboard will be located on the Billboard Easement Area. Buyer and Seller shall jointly pursue the entitlements and approvals necessary (i) to approve the Easement Agreement and the Billboard Easement Area
(the “Easement Approvals”), and (ii) to permit the construction and operation of the New
Billboard on the Billboard Easement Area (the “New Billboard Entitlements”). The New
Billboard Entitlements shall include a Development Agreement between Buyer and Seller (the
“Development Agreement”), which Development Agreement shall be negotiated during the
Entitlement Period (as defined in Section 1.5.3). To facilitate the issuance of the Easement
Approvals and the New Billboard Entitlements, during the Due Diligence Period, Buyer and Seller
shall use good-faith efforts to negotiate and finalize a revenue sharing agreement (the “Revenue
Sharing Agreement”) which gives Buyer, for a term of 30 years, 30% of the difference between
X and Y, where X equals the annual gross revenue actually received by Seller for the New
Billboard (without regard to or deduction for any expenses or costs to build, construct or maintain
the New Billboard), and Y equals $55,000.
Besides the purchase price the City of West Hollywood plans to spend between 1-2 million dollars to renovate the premises. This purchase comes at the same time of Council discussions about de-funding the West Hollywood Sheriff by approximately $3 million and re-tooling those dollars for homeless outreach services.
Is the City trading Public Safety to benefit 20 homeless individuals? Are there other ways to find 20 rooms or more within our City to accommodate transitional housing?
Send your thoughts to email@example.com